Who can claim Universal Credit and how much do you get paid?
Following Chancellor of the Exchequer Jeremy Hunt’s 2023 Budget speech, households are trying to work out just what it will mean for their finances.
Universal Credit is a government-run scheme that assists people on low incomes, and those who are out of work or unable to, with their living costs.
It is paid monthly in the UK, although sometimes it is paid twice monthly in Scotland.
Universal Credit replaced six previous benefits and tax credits – Child Tax Credit, Housing Benefit, Income Support, Income-based Jobseeker’s Allowance (JSA), Income-related Employment and Support Allowance (ESA) and Working Tax Credit.
So, how much do you receive on Universal Credit, and who is eligible?
What changes were made in the Budget?
Here is everything you need to know.
Spring budget 2023: Key points
- Seven key takeaways from today’s Budget
- Energy price guarantee to remain at £2,500 for the next three months
- 30 hours of free childcare for every child over the age of 9 months
- Pension changes coming in 2023 – from payment rises to tax cuts
To get the latest from the budget announcement visit Metro.co.uk's Metro's Budget news hub.
Who is eligible for universal credit?
There are currently 5.9 million Universal Credit claimants in Great Britain, according to government figures, with 2 million of these people actively seeking work.
You may be eligible for Universal Credit if you’re on a low income or need help with living costs.
This could be because you are out of work, working part-time or in self-employment, or are unable to work, due to your health.
In the Budget, the Chancellor announced that there will be more sanctions for people receiving UC who ‘do not look for or actively take up employment’, and the government ‘will increase work search requirements’ for those on the benefit.
It will also ‘strengthen job support for claimants that are lead carers of young children who currently have no or limited requirements to search for and prepare for work’.
In order to claim Universal Credit, The Gov.UK website states that you must:
- Live in the UK
- Be aged 18 or over (there are some exceptions if you’re 16 to 17)
- Be under the State Pension age
- Have £16,000 or less in money, savings and investments
More information on Universal Credit is available on the dedicated government web page.
How much can you earn on universal credit?
What you receive from UC will depend on your circumstances and earnings.
The best way to determine what benefits you are entitled to is by using the government Benefit Calculators.
However, currently, the Gov.UK website states that the standard allowance per household stands at:
- If you’re single and under 25, you’ll receive £265.31 (or £334.91 if you’re single and 25+)
- If you live with your partner and you’re both under 25, you’ll receive a combined £416.45
- If you live with your partner, and one or both of you are over 25, you’ll receive a combined £525.72
To support parents on Universal Credit move into work or increase their hours, the government is to increase the amount of UC support for childcare costs by almost 50%.
This will be paid upfront instead of in arrears.
Families will now be able to claim £951 for one child & £1,630 for two children.
This is up from a maximum of £646.35 and £1,108.04, which previously had to be paid upfront and then claimed back.
MORE : Jeremy Hunt opens budget with bleak warning for future of our finances
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